U.S. Forecast: A Guide to Real Estate Decisions

U.S. Forecast: A Guide to Real Estate Decisions

September 20, 2010 Off By Chris

Our Industral U.S. Forecast Report published this month provides insight into the present state of commercial real estate and its near future. Interpreting this information to determine how it affects you as a tenant can aid you in your real estate decision making.

While we all continue to look forward to a recovery in the overall economy, it is important to set your company up to benefit from the downturn as the economy recovers in the future. In order to take advantage of the current market, feel free to contact me for a complete review of your lease(s) without any obligation. We can devise a strategy to forge your real estate decisions into implementing your company’s overall plan for the future.

Below are highlights of the report that can impact you:

  • Good news for Tenants: Rents will remain largely flat for the next two years.
  • For the first time in 2 years, demand for office and industrial space registered levels in positive territory in the second quarter of 2010. This may be correlated with the current pace of hiring which, although not enough to significantly impact unemployment has been sufficient to keep vacancy rates generally even.
  • High quality, Class A and trophy properties will attract new and retain existing tenants at market rates and will see rent growth first.
  • Quality assets in major markets are dominating investment sales activity and some are fetching prices very similar to pre-recession levels.
  • Corporate profits are up 40% over a year ago but, given the elevated risks in the economy, lack of confidence and lack of clarity on numerous legislative issues, 2011 will likely be another year of lackluster hiring.
  • The pop in labor markets will come in 2012. By then, the economy will be growing between 4-6% and business leaders and banks will have greater clarity on policy issues.

Full report along with 2009-2011 statistics and forecasts: US Forecast Report 9.17.10